Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit, commonly known as petrol, by 75 naira per litre following a decline in global oil prices linked to easing tensions in the Middle East.
In a notice issued to fuel marketers on Monday, the refinery said the new gantry price has been reduced to 1,175 naira per litre from 1,250 naira per litre. The coastal price was also lowered from 1,595,790 naira to 1,495,215 naira per metric tonne.
The refinery said the revised prices would take effect from midnight on June 16.
“Following the de-escalation of tensions in the Middle East, which has impacted energy prices, we have reviewed our premium motor spirit gantry and coastal prices,” the company said in the notice.
Dangote Refinery added that all outstanding unloaded gantry volumes would be repriced at the new rate.
The price reduction follows a recent decline in global crude oil prices after reports of a ceasefire agreement and ongoing negotiations between the United States and Iran aimed at reopening the Strait of Hormuz, a critical global oil shipping route.
Brent crude, the international benchmark, fell to about $83 per barrel on Monday after trading above $120 per barrel during more than three months of conflict between the United States and Iran.
The sharp rise in crude prices during the conflict contributed to higher fuel prices worldwide. In Nigeria, petrol prices increased from about 830 naira per litre to nearly 1,300 naira per litre, while diesel and aviation fuel prices also rose significantly.
Industry analysts say the decline in crude prices is expected to ease pressure on fuel costs and could lead to further reductions in domestic petrol prices if global market stability is sustained.
According to market data, the Dangote refinery’s revised ex-depot price is currently among the lowest in the market, where many marketers had been selling petrol at around 1,240 naira per litre before the adjustment.
Despite expectations of further price reductions, refinery officials cautioned that existing inventories of crude purchased at higher prices could slow the pace of additional cuts. Some industry sources, however, estimate that petrol prices could eventually fall to around 900 naira per litre if crude prices continue to decline and geopolitical tensions remain subdued.
